Page 13 - EurOil Week 05 2021

EurOil PROJECTS & COMPANIES EurOil

UK’s Wressle field flows first oil

UK UK junior Egdon Resources has reported first barrels per day (bpd).
oil at its Wressle field in North Lincolnshire in “The successful and safe completion of
Wressle’s launch England. operations to recomplete and reperforate the
follows the recent end The project had been held back by a three- Wressle-1 well on schedule, in spite of the
of a three-year legal year court battle with the North Lincolnshire ongoing pandemic and association lockdown,
battle. Council, which had denied planning permis- is testament to the professionalism and exper-
sion for drilling. But the dispute was finally won tise of the team on the ground,” Europa CEO
by Egdon in early January, clearing a path for Simon Oddie said. “With Wressle-1 currently
Wressle’s development. Egdon’s share price sub- on continuous 24-hour test production, I look
sequently surged by 30%. forward to providing further upgrades once
Egdon said it had recompleted the Wressle it has cleaned up and flow rates have been
well and reperforated the Ashover Grit reser- stabilised.”
voir interval on schedule. The free flow of oil has The market had largely factored in Wressle’s
commenced, and the well is undergoing a con- successful launch already. Egdon shares were
tinuous 24-hour production test, the company down 1.7% on the morning of February 1, while
said. Europa shares were up 0.9% and Union Jack
“The company will provide a further detailed shares down 3%.
update when flow rates have stabilised on com- “The well has not flowed for six years and the
pletion of clean-up,” Egdon said. fact that free flowing oil has been achieved is in
Wressle’s oil will be transported by road itself a significant result,” HydroCarbon capital
tanker to the Philips 66 Humber refinery and founder Malcom Wood commented in a note.
sold under Egdon’s existing oil sales contract. “This being the first stage in the process, we
Egdon has a 30% operated interest in Wressle, should expect production to ramp up slowly, but
while fellow junior players Europa and Union for all three companies the very fact that Wressle
Jack Oil have shares of 30% and 40% respectively. is now [in] production is exceptionally good
The field will initially flow at a gross rate of 550 news.” ™

Neptune kicks off Seagull drilling

UK NORTH Sea-focused Neptune Energy and its infrastructure began in September, with Tech-
partners have kicked off development drilling nipFMC deploying its Apache II vessel to
The field’s launch was at the Seagull oil and gas field in UK waters, the install tie-back pipes.
delayed from late 2020 company said on January 28. “Thanks to a collaborative approach between
to the second half of In a statement, Neptune reported that the Neptune, our partners BP and Japex and key
2021. Valaris-operated Gorilla VI jack-up rig would contractors, we are progressing with the project
complete four wells over the next 18 months. at pace and have reached another important
The high-pressure, high-temperature Seag- milestone,” Neptune said in its statement.
full field will flow 50,000 barrels of oil equivalent Seagull, first sanctioned in 2019, is designed
per day (boepd) at full capacity. Its proven and for a 10-year production life. The field lies in
probable reserves are estimated at 50mn boe. waters around 95 metres deep and its reservoirs
The project had been scheduled for launch are over 4,000 metres below the seabed.
in late 2021, but Neptune conceded in May that Seagull is one of a number of projects involv-
production was unlikely to start until late 2022, ing Neptune to suffer delays because of the pan-
owing to coronavirus (COVID-19) disruptions demic. The company revealed in May that the
and the pandemic’s impact on markets. restart of Equinor-run Njord oilfield following
BP has described Seagull as a “rapid tie-back,” a redevelopment programme had been pushed
that will boost production from the ETAP cen- back to the second half of 2021, from late 2020.
tral processing facility it operates in the North The field closed down in 2016 because of struc-
Sea that feeds into the Forties system. The oil will tural integrity issues with the Njord A platform.
be pumped via Forties to the Kinneil terminal at There has been a similar delay at the Nep-
Grangemouth, Scotland, while the field’s gas will tune-operated Duva field.
be delivered to the Cats processing terminal at Neptune also pulled out of plans to buy Edi-
Teesside in north-east England. son E&P’s North Sea operations from Energean
Neptune operates the field with a 35% Oil & Gas following the oil price crash. Those
participation, while BP has 50% and Japan’s assets are now set to be swallowed up by Nor-
Japex has 15%. Work on the project’s subsea way’s Sval Energi. ™

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